Marketing agent CBRE is launching the tender sale of 87 and 88 Amoy Street, a pair of two adjoining prime 4-storey conservation shophouses in the heart of the CBD.
Both 87 and 88 Amoy Street have a combined land area of approximately 5,375 square feet, and a total gross floor area of approximately 14,641 square feet. The site is zoned for commercial usage under the Chinatown (Telok Ayer) Conservation Area in the 2014 Master Plan. It is well-served by a passenger lift and reinforced concrete staircases. Prominently located along Amoy Street, the property enjoys approximately 14 metres of road frontage with high visibility. An open air public car park is located right in front of the property and public on-street parking lots are available along Amoy Street and the adjacent streets.
Nestled within the “Chinatown – Telok Ayer Conservation Area”, an area that exudes nostalgic charm, the location is home to an eclectic mix of restaurants, local eateries, cafes, bistro bars, gym, showrooms and offices. Situated in the heart of the CBD, the property is strategically located within a 2-minute walk to both Tanjong Pagar and Telok Ayer MRT Stations. It also enjoys tremendous footfall from occupiers of neighbouring office buildings and tourists. Landmarks nearby include major integrated developments such as Tanjong Pagar Centre, upcoming Frasers Tower, upcoming ASB Tower (former CPF Building) and Ann Siang Hill Park.
Sammi Lim, Director, Capital Markets, CBRE said, “With the flurry of activity in the shophouse market over the past few months, the launch of this property gives buyers another opportunity for consideration. Recent shophouse transactions in the immediate vicinity such as 52, 75 and 77 Amoy Street recorded a price range of $3,500 to $3,944 per square foot, and 21 Boon Tat Street has been recently launched for sale with an asking price of $4,388 per square foot. The guide price for this pair of Amoy Street shophouses, especially one that comes with a lift, at $50 million or $3,415 per square foot over the gross floor area is certainly attractive in comparison.
At this price, this property is one of the most compelling options in the current market. In addition, investors will gain from the immediate rental income from the property which currently enjoys full occupancy. Given the strong proposition of this property, we expect buyers who have been waiting at the sidelines to now come forward and evaluate this opportunity seriously.”
The adjoining shophouses provide buyers with the added flexibility and creativity to configure the space to suit their own-use requirements or cater to tenants’ needs. The property commands a strong tenant profile with the entire ground floor being tenanted to a health and fitness group, a multinational corporation office tenant on the second floor, a shipping company and a hospitality group on the third and fourth floors respectively.
“Buyers are now more open to accepting lower entry yields, especially if the shophouses are located in prime locations or come with strong tenant profiles. This is as most buyers take a medium to long-term view, with the expectation that rents and capital will appreciate. Prices for prime conservation shophouses in Districts 1 and 2 have also remained resilient.” added Ms Lim.
As a commercial property, this public tender is open to both locals and foreigners with no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase of the property.
CBRE is the sole marketing agent for this Public Tender Exercise, which closes on 11 October 2018, Thursday at 3pm.